There is a stock trading technique called 'Buying Dividends' that is becoming more and more popular. This is the process of buying stocks before the ex dividend date and selling the stock shortly after the ex date at about the same price, yet still being entitled to the dividend. This technique generally works only in bull markets.

When you buy dividends, there are many stocks in many different sectors to choose from. In order to be entitled to the dividend, you have to buy the stock before the ex-dividend date, and you can't sell the stock until after the ex date. The actual dividend may not be paid for another few weeks. WallStreetNewsNetwork has compiled a free downloadable and sortable Excel list of the stocks going ex dividend during the next week or two. WSNN.com came up with many companies, all with market caps over $500 million. Here are a couple examples showing the stock symbol, the ex-dividend date and the yield.

Q3 2009 Earnings Call Transcript

November 3, 2009 10:00 am ET

I am a firm believer in keeping things simple. However, you can simplify things to the point they no longer have value. In my opinion, a lot of the commonly used financial metrics can be very misleading unless you understand what is behind them. I would put EBIT, EBITDA and Dividend Payout in this category. As an investor in dividend stocks, I see Dividend Payout used a lot, so let’s take a closer look at it.

Q2 2009 Earnings Call Transcript

August 4, 2009 10:00 am ET

The S&P High Yield Dividend Aristocrats is part of the S&P Dividend Aristocrats index series. This constituents in this index have followed a policy of raising dividends each year for at least 25 consecutive years.

In addition, all the constituents are members of the S&P Composite 1500 Index. The stocks are equally weighted and are re-weighted quarterly.

Q1 2009 Earnings Call

May 5, 2009 10:00 am ET

“By prevailing over all obstacles and distractions, one may unfailingly arrive at his chosen goal or destination.”- Christopher Columbus

Needless to say, it has been an incredibly tumultuous environment. The economic outlook, despite a few specks of light in a dark sky remains quite bleak. Despite this, I have been encouraged by valuations, by the tape action, and by the prevailing sentiment that continues to express doubt in the strength of this rally.

Diebold (DBD) builds, sells, and services ATMs, security products and systems, and computerized voting machines. About 67% of revenues are derived from ATM sales and service.

Electronic voting machines account for about 5% of other revenues with contributions from safes, vaults and surveillance systems at approximately 24%. Non-US sales are about 50%.

In every field there are winners and there are champions. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions. Not surprisingly, I went to the Dividend Champions list to find these ten dividend stocks that stand alone with 50+ years of consecutive dividend increases. They are presented here in descending rank:

10. Integrys Energy Group (TEG) - 51 Years

Dividends have historically provided 40% of average annual total return performance to investors. Some researchers have found that it was re-invested dividends that contributed to the majority of total long-term returns for investors. Jeremy Siegel is one of those researchers who has found that the compounding effect of re-investing dividends has accounted for 97% of total returns in the US stock market since 1871. Add in dividend growth as an additional compounding component, and investors could achieve very decent total returns over time. While most investors are running away scared from dividend stocks, fearing that more cuts lie ahead, the true dividend investors keep getting their checks in the mail. They know that by investing in non-cyclical names, there is a smaller chance of dividend cuts. Furthermore, by spreading their bets among as many dividend stocks across all sectors and industries as possible, dividend cuts do not affect their lifestyle that much.

Several companies rewarded their long-term shareholders with news of dividend increases last week.

When the world appears to be collapsing in around you and things look their darkest, it is then when character is determined and leaders rise to the top. On Tuesday, U.S. Treasury Secretary Timothy Geithner called for a new program that combines public and private capital to be used in a fund that will buy troubled assets of up to $1 trillion, aimed at unfreezing credit markets. The the markets were underwhelmed. Many companies, such as Harley-Davidson (HOG) and Dow Chemical (DOW), used this smoke screen to slash dividends, but in the midst of the turmoil, an American Aristrocrat and a Canadian Achiever stood tall.

According to the National Bureau of Economic Research, and backed up by the Federal Reserve's Industrial Production Index, the economy officially went into recession starting in December 2007. Since then, we have seen the economy and the stock market decline in unprecedented amounts never before seen. As the chart below demonstrates, not even the "Great" Depression has seen such a year-over-year decline on a percentage basis.

click to enlarge

Q4 2008 Earnings Call

February 04, 2009 10:00 AM ET

Bullish Calls:

Netflix (NFLX): “This is the stay at home option. I’m going to wait for the quarter because this stock has had such a monster move.”
Novo Nordisk A/S (NVO): “I am pulling the trigger because I like the drug companies. I believe in a world-wide slowdown. I’m not backing down from that thesis.”
Panera Bread (PNRA): “This stock should be bought on any weakness. I think this is a winner. Buybuybuy, You should buy it under $50.”
Anadarko Petroleum (APC)

Q3 2008 Earnings Call

October 30, 2008 10:00 am

One Day at a Time - Excelon's (EXC), NRG Energy (NRG), Take Two (TTWO), International Rectifier (IRF), Diebold (DBD), United Technologies (UTX)

There is a commonly told myth that says that companies that pay a dividend misallocate funds that could be used to generate new revenue or grow the company. According to this myth the lack of growth in the company will keep the stock's price low over the short and long term. This is the most fascinating misconception that exists about dividend paying companies. The theory seemingly makes sense, yet after critical examination, the truth comes out.

The following is the performance of Dividend Achievers in the last year from August 8, 2007 until August 8, 2008. These stocks either hit a new low within the year and moved higher from there, or they have started the year at a low and continued upward. Keep in mind that the percentage change of these stocks does not include the annual dividend that would have been received over the same period of time and just looks at stock appreciation.

Marc Faber

• Stock market negatives include still-inflated earnings estimates, potentially higher interest rates, and an Obama candidacy.
• He likes Japan (SCJ) for its low valuation, including Mitsubishi UFJ (MTU) and Mizuho Financial (MFG). AMR (AMR) on a predicted drop in oil prices. Gold (GLD) ("If you have no exposure to gold, start buying it here."). And shorting U.S. Steel (X), which will take a hit if the pace of building in China and elsewhere subsides.

Mario Gabelli

• Besides the housing and auto markets, which need help, there will be less financial stress in the second half of the year.
• Three themes he likes: Environmental stocks, companies with pricing power, and the following takeover possibilities: 1) Telephone and Data Systems (TDS), which has tremendous untapped value. 2) Tootsie Roll Industries (TR), controlled by the aging Gordon couple, who should be looking to sell. 3) Tredegar (TG), diaper maker which will benefit from growing child population and the use of diapers for incontinence. 4) Herley Industries (HRLY) another takeover target. And 5) Diebold (DBD), which already rejected a bid from United Technologies (UTX).

Art Samberg

• Consumer credit and commercial lending will drag the markets down this year and next. IPOs are dead.
• He likes copper, natural gas and coal. Namely: Ultra Petroleum (UPL) and Southwestern Energy (SWN), which he calls "double play" stocks. Freeport-McMoRan Copper & Gold (FCX) a lack of electricity is making it harder to mine copper. Vale (RIO) is super cheap. Halliburton (HAL).

Fred Hickey

• Hickey says things haven't been this bad since 1929. "The market will get killed when companies admit the second-half rebound isn't going to happen."
• He recommends buying gold and selling "horsemen" tech stocks (MSFT, ORCL, EMC, HPQ, AAPL, and semis). He likes Golden Star Resources (GSS) and streetTRACKS Gold Trust ETF (GLD).

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Friday May 16.

Bullish calls:

Hanesbrands (HBI): "That's a remarkable turn-around company.”